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Homework: HW7. Ch.11 and Ch.12 Save Score: 0 of 1 pt 24 of 25 (17 complete) HW Score: 54.67%, 13.67 of 25 p X P
Homework: HW7. Ch.11 and Ch.12 Save Score: 0 of 1 pt 24 of 25 (17 complete) HW Score: 54.67%, 13.67 of 25 p X P 12-32 (similar to) Question Help o Suppose Intel stock has a beta of 1.71, whereas Boeing stock has a beta of 0.89. If the risk-free interest rate is 3.4% and the expected return of the market portfolio is 10.5%, according to the CAPM, a. What is the expected retum of Intel stock? b. What is the expected return of Boeing stock? c. What is the beta of a portfolio that consists of 66% Intel stock and 35% Boeing stock? d. What is the expected return of a portfolio that consists of 65% Intel stock and 35% Boeing stock? (There are two ways to solve this.) a. What is the expected return of Intel stock? Intel's expected return is 15.5%. (Round to one decimal place.) b. What is the expected return of Boeing stock? Boeing's expected return is % (Round to one decimal place.) Enter your answer in the answer box and then click Check
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